Using OECD average wages, Americans make 80% more than Europeans. The last time it was this extreme was at the turn of the century. European stocks went on to outperform through 2007, seemingly due to wage competitiveness and the EUR rebound. Whether it repeats, I don't know. pic.twitter.com/DECIDMXTEN
— Jeff Weniger (@JeffWeniger) September 13, 2024
- Wage Comparison: According to the OECD, the average wage in the United States is indeed higher than in many European countries. However, the exact percentage difference can vary based on the specific countries compared and the metrics used. The claim of an 80% difference seems to be an overestimation. For instance, in 2022, the average annual wage in the U.S. was around $74,738, while in Germany, it was approximately $53,745.
- Historical Context: At the turn of the century, the wage gap between the U.S. and Europe was notable, but not necessarily at the 80% mark. The economic conditions, including the tech boom and different fiscal policies, contributed to this disparity.
- Stock Market Performance: European stocks did outperform U.S. stocks from the early 2000s until 2007, partly due to the euro’s strength and wage competitiveness.